Pro: Why Silver Could Catch Up to Gold

Gold and silver tend to track each other pretty closely,but it you've looked a chart recently, you probably noticed that gold has started to beat the lesser metal.

There are two main reasons for the divergence. First of all, the Cyprus news has made investors nervous -- and the market's first inclination is to buy gold, at the expense of all else, in times of distress. Second, the market still believes that silver has a small industrial component baked into its price.

However, the tendency is for silver to lag gold's initial move, and then play catch-up. I think we could be setting up to play out this scenario.

If silver trades above $29.30, this confirms strength,and I would consider getting long with an upside objective of $30.75. I would keep my risk fixed by set a stop down at $28.35.

An earlier version of this story included a headline that suggested gold could catch up to silver, when, in fact, silver could catch up to gold.

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